Settlement - FHOG

[Sharpstone888]

I am getting ready to purchase my first home using the 14K FHOG in the first 6 months of next year.

With the usual 30-60 days till settlement can I still claim the increased FHOG even if my settlement date is after the june cutout (that is if they drop it back down, but thats another issue).

So what I am saying is that I might be able to buy a property in the first half of next year and negotiate a long settlement, then jump in later when my cashflow (and savings are higher) to allow me to survive the 6 months easier (dam uni student incomes)

Chris

 

[Bradsdad]

I am getting ready to purchase my first home using the 14K FHOG in the first 6 months of next year.

With the usual 30-60 days till settlement can I still claim the increased FHOG even if my settlement date is after the june cutout (that is if they drop it back down, but thats another issue).

So what I am saying is that I might be able to buy a property in the first half of next year and negotiate a long settlement, then jump in later when my cashflow (and savings are higher) to allow me to survive the 6 months easier (dam uni student incomes)

Chris

G'day Chris,

I'm a little confused as to what you're asking with this post or in fact if there is a question here.
If you are intending on buying prior to 30/06/09 the FHOG is OK. You will however be signing a contract during that period. If you're relying on future income to service the loan then you may not be in a position to obtain FORMAL approval for finance for the purchase. This couldleave you in a difficult position should the "future" income not become a reality. In essence you'll end up with an uncondictional contract of sale which could lead to disaster.


Regards
Steve

 

[Mom]

Hi there,

As long as your contract of sale is exchanged ( vendor and purchaser signed) prior to 30/6/2009, under current govt law, you are eligilbe for the $14K FHOG. It does not matter whether you settle in 3 or 6 months time.

The problem you will get is finance approval. When the banks give you finance approval, it will only valid for 90 days. Once the 90 days passed, you will need to provide new financial evidence such as payslip, etc. So it will be assessed as brand new loan application.

In current state of economy, job stability is the thing of the past. I suggest you don't rely on it. See, if you loose your job, and you may immediately find new employment straight away, you still have to wait for at least 6 months to be able to apply for a loan. This situation will put you in great difficulties, if you have a loan offer that has expired and a contract of sale that need to be settled soon.

 

[Sharpstone888]

Thanks guys, answered my question perfectly. Good point about the unemployment during the settlement period, very important.

Chris